The BSE Sensex and NSE Nifty ended a lacklustre trade 0.24 per cent down on Monday as investors maintained cautious approach ahead of Reserve Bank of India’s (RBI) monetary policy review due on Tuesday. Sensex ended 65.58 points down at 26,777.45, while NSE Nifty settled 19.75 points down at 8,201.05.
The BSE Sensex touched a high and a low 26901.42 and 26729.54, respectively. The broader indices made a mixed closing; the BSE Mid cap index ended down by 0.09 per cent, while Small cap index gained 0.22 per cent.
“Market activity stayed tepid through trading Monday, weakness crept in around closing to take the indices marginally lower. All focus remains on the RBI rate policy due to be announced on Tuesday, expectations are for the RBI to reiterate its dovish April commentary and take a pause on Tuesday,” Nikhil Kamath, Co-Founder & Director, Zerodha said.
Investors also remained worried about the outcome of the impending US Federal Reserve meet and uncertainty about a Brexit — the likelihood of Britain leaving the European Union.
But the silver lining was recently-released upbeat GDP numbers and retention of the above-normal monsoon forecast, which capped the losses a bit.
“Markets ended marginally lower in a dull trading session on Monday as participants preferred to sit on sidelines ahead of RBI policy meet. Mostly sectoral indices traded in line with index and ended on flat note; however, movement in midcap and smallcap saved the participants’ day, ” Jayant Manglik, president, retail distribution, Religare Securities Ltd said.
Among the top gaining sectoral indices on the BSE were Realty up by 0.80 per cent, Capital Goods up by 0.47 per cent, Auto up by 0.10 per cent and FMCG up by 0.01 per cent, while Consumer Durables down by 1.39 per cent, TECK down by 0.54 per cent, Oil & Gas down by 0.54 per cent, IT down by 0.33 per cent and PSU down by 0.24 per cent were the top losing indices on BSE.
Shares of state-owned banks such as Oriental Bank of Commerce, Punjab National Bank, SBI, Allahabad Bank and Andhra Bank were lapped up too, which rose by up to 2.85 per cent after Finance Minister Arun Jaitley said lenders will be empowered and protected for “commercially prudent” settlement of bad debt.
The top gainers on the Sensex were Tata Motors (up by 1.51 per cent), SBI( up by 1.30 per cent), GAIL India up by (1.24 per cent), Mahindra & Mahindra (up by 1.19 per cent) and Cipla up by 0.55 per cent. On the flip side, Bharti Airtel (ended down by 2.62 per cent), Lupin (down by 2.08 per cent), Maruti Suzuki (down by 2.01 per cent), Sun Pharma (down by 1.67 per cent) and Axis Bank (down by 1.60 per cent) were the top losers.
The top gainers on Nifty were Bank of Baroda up by 2.46 per cent, Tata Motors up by 1.89 per cent, Yes Bank up by 1.68 per cent, Ultratech Cement up by 1.25 per cent and Eicher Motors up by 1.13 per cent. On the flip side these stocks were among the top losers – Bharti Airtel down by 2.67 per cent, Lupin down by 2.42 per cent, Bharti Infratel down by 2.22 per cent, Tech Mahindra down by 2.13 per cent and Sun Pharmaceuticals Industries down by 1.95 per cent.
European markets were trading in green; France’s CAC increased 6.06 points or 0.14% to 4,427.84, Germany’s DAX gained 28.71 points or 0.28% to 10,131.97 and UK’s FTSE 100 was up by 61.24 points or 0.99% to 6,270.87.
Asian equity markets ended mostly higher on Monday after fluctuating in early trade, in response to a shockingly weak US employment report as well as a disappointing report on the non-manufacturing sector.
“Considering the latest inflation figures and upcoming global events, we believe that the RBI will go with the street census and maintain status quo in this policy. So, we suggest keeping positive yet cautious approach and reiterate our view to lighten trading positions ahead of the event,” Manglik added.
Markets through the day
3.30 pm: Sensex ended 65.58 points down at 26,777.45, while NSE Nifty closed trading 19.75 points down at 8,201.05.
3.26 pm: Sensex was trading 56.55 points down at 26,786.48, while NSE Nifty was trading 18.40 points down at 8,202.40. Asian equity markets ended mostly higher on Monday after fluctuating in early trade, in response to a shockingly weak US employment report as well as a disappointing report on the non-manufacturing sector. Data from the Labor Department showed that US employment edged up by just 38,000 jobs in May compared to economist estimates for an increase of about 158,000 jobs, reflecting the smallest increase in employment in more than five years. Chinese stocks closed a tad lower ahead of a flurry of data due this week and the upcoming Dragon Boat Festival holidays. Japanese shares hit four-week low as the dollar slid to a one-month low against the yen on the back of weaker-than-expected US jobs data, adding pressure on the outlook for Japanese exporters. Markets in South Korea remained closed for Memorial Day.
2.53 pm: Housing Development and Infrastructure Ltd (HDIL) shares were trading 2.93 per cent up at Rs 96.55 on reports that the real estate company is about to complete two land sales in Mumbai suburbs – Virar and Palghar – for an estimated Rs 7.75 billion. Sensex was trading 81.18 points down at 26,761.85, while NSE Nifty was trading 23.45 points down at 8,197.35.
2.15 pm: European stocks rose on Monday, as gains in the shares of major mining and oil companies propped up the region’s markets, which had fallen at the end of last week after weak U.S. jobs data. The pan-European STOXX 600 and FTSEurofirst 300 equity indexes were both up by 0.1 percent by 0710 GMT. Sensex was trading 13.78 points down at 26,829.25, while NSE Nifty was trading 4.60 points down at 8,216.20.
1.55 pm: BSE Bankex was trading 0.19 per cent or 37.73 points up after Finance Minister Arun Jaitley met PSU banks for a review and said that banks should be empowered and protected so that they can reach settlements on bad loans. Sensex was trading 31.47 points down at 26,811.56, while NSE Nifty was trading 7.85 points down at 8,212.95.
1.33 pm: Steel Strips Wheels shares were trading 4.05 per cent up at Rs 429.85 after its promoter — Chandigarh Developers — increased its stake in the company via open market purchase. The promoter, on June 3, 2016, purchased 24,949 equity shares representing 0.17% stake of the company through open market. Sensex was trading 16.08 points down at 26,826.95, while NSE Nifty was trading 3.50 points down at 8,217.30.
12.49 pm: Stocks in China edged lower on Monday as investors await a flurry of data in coming weeks to assess the health of the economy. But losses were capped by growing hopes that MSCI will include Chinese shares in its emerging market index in a decision next week, which could spark foreign buying. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.3 per cent to 3,178.79, while the Shanghai Composite Index lost 0.2 per cent to 2,934.10 points. Sensex was trading 23.02 points down at 26,820.01, while NSE Nifty was trading 5.55 points down at 8,215.25.
12.24 pm: Force Motors stocks were trading 2.76 per cent at Rs 3009.00 after it reported the production, sales and export of the products manufactured by the company during the month of May 2016. The company’s production of Small Commercial Vehicles (SCV) & Light Commercial Vehicles (LCV) and Utility Vehicles (UV), Sports Utility Vehicles (SUV) & Tractors stood at 1,588 units and 923 units respectively. Sensex was trading 26.16 points down at 26,816.87, while NSE Nifty was trading 8.40 points down at 8,212.40.
11.54 am: Lupin’s US subsidiary, Gavis Pharmaceuticals LLC has received final approvals for its Voriconazole Tablets, 50 mg & 200 mg and Voriconazole Oral Suspension, 40 mg/mL from the United States Food and Drug Administration (USFDA) to market a generic equivalent of PF Prism C.V’s Vfend Tablets, 50 mg & 200 mg and Vfend Oral Suspension, 40 mg/mL. Lupin shall commence promoting the products in the US shortly. Stocks of the company were trading 0.21 per cent down at Rs 1446. Sensex was trading 26.61 points down at 26,816.42, while NSE Nifty was trading 8.80 points down at 8,212.00.
11.17 am: Adani Enterprises shares were trading 1.53 per cent down at Rs 70.90 as it may pull out from the proposed 21.5 billion dollar rail and mine project in Australia amid a series of legal challenges from environmental groups against the Indian energy giant’s plans to build one of the world’s largest coal mines. Sensex was trading 14.03 points up at 26,857.06, while NSE Nifty was trading 1.10 points up at 8,221.90.
10.48 am: Biocon stocks were trading 3.62 per cent up at Rs 728.50 after Mylan Inc and Biocon confirmed the efficacy and safety of MYL-1401O, a proposed biosimilar trastuzumab co-developed by the firms, in comparison to Roche’s branded Herceptin used for treatment of cancer. Sensex was trading 28.86 points up at 26,871.89 while NSE Nifty was trading 7.15 points up at 8,227.95.
10.18 am: Indian rupee strengthened by 37 paise to 66.88 against the US dollar in early trade at the Interbank Foreign Exchange market on increased selling of the American currency by exporters amid foreign fund inflows. Sensex was trading 10.67 points at 26,832.36, while NSE Nifty was trading 6 points down at 8,214.80.
9.53 am: Excel Crop Care stocks were trading 0.58 per cent up at Rs 1228.10 after Japanese conglomerate Sumitomo acquired 44.98 per cent stake in the company for around Rs 623.44 crore and also announced launch of Rs 415.80 crore open offer to acquire further 30 per cent stake in the company. Sensex was trading 22.92 points up at 26,865.95, while NSE Nifty was trading 1.30 points up at 8,222.10.
9.27 am: Jubilant Life Sciences stocks were trading 4.83 per cent up at Rs 370 after it received final approval from the US health regulator for generic Levetiracetam injection, used for treatment of epilepsy, in the American market. Sensex was trading 42.75 points up at 26,885.78, while NSE Nifty was trading 7.20 points up at 8,228.
9.15 am: The BSE Sensex and NSE Nifty opened on a flat note. Sensex was trading 9.39 points up at 26,852.42, while NSE Nifty was trdaing 1.60 points down at 8,219.20.
Domestic benchmark indices BSE Sensex and NSE Nifty are likely to open flat with positive bias Monday tracking Shanghai Index and Hang Seng Index.
At 8.19 am, SGX Nifty was trading 0.51 points or 0.01 per cent down at 8,236.50. Wall Street ended down on Friday, though off session lows, with the S&P 500 finishing within just 1.5 per cent of its record closing high.
Asian shares rose on Monday and the dollar wallowed close to its lowest in nearly a month after US non-farm payrolls showed the slowest job growth in more than five years, quashing expectations for a near-term US interest rate hike.
On Friday, Markets ended steady in a choppy session with the Sensex falling below the 27,000-mark after marking its new 7-month high in intra-day trade following profit-booking in recent outperformers, even as both indices recorded gains for the second straight week. Cautious stance adopted by participants ahead of next week’s RBI monetary policy too influenced trading sentiment, brokers said.
Sun Pharma stocks will be in focus after the drug major sold two of its US-based manufacturing facilities along with 15 products to Frontida BioPharm Inc for an undisclosed amount.
Adani Enterprises may also hog limelight as it may walk away from its proposal to build one of the world’s biggest coal mines in Australia, citing long delays caused by legal challenges to the project by groups concerned about the environment.
Along with the above companies, stocks of Lupin, Jubilant Life and Coal India will remain in focus on Monday.